A Reexamination of Whether U.S. Bank Holding Companies announce to Repurchase Share

• Main Authors: Wen-Yu Tseng, 曾文郁
• Other Authors: 劉啟群
• Format: Others
• Language: en_US
• Online Access: http://ndltd.ncl.edu.tw/handle/pw2469

碩士 === 國立臺灣大學 === 會計學研究所 === 96 === A sample of 380 U.S. bank holding companies from 1993 to 2006 is collected to study whether the U.S bank holding companies announce to repurchase shares. In addition to previously-mentioned factors (or hypotheses): substitution hypothesis, risk, undervaluation hypothesis, size, takeover deterrence hypothesis, optimal capital ratio hypothesis, free cash flow hypothesis, and investment opportunities, this study come up with three new factors: the accounting loan default variables, the loan composition and the business cycle. The empirical results show that internal factors such as, a bank holding company’s accounting loan default variables, loan composition, dividend payout, risk, size, free cash flow, and investment opportunities, and external factors like business cycle and takeover threat, both have influence on the bank holding companies’ share repurchase announcements, while no significant evidence to support the undervaluation hypothesis and optimal capital ratio hypothesis.